Tuesday, January 1, 2013

Happy New Year!!!

At first it was not known if we'd even see the end of 2012 on December 31st as they ancient Mayans had nothing on the calendar for December 22nd. Fortunately for the living we survived December 21st only to wonder what the landscape would look like after December 31st. Our elected leaders once again proved our Founding Fathers right that political party affiliation will be our downfall. It wasn't until 2 am on January 1, 2013 did the Senate, with 8 Senators voting against it, passed a compromise to potentially overt the "fiscal cliff".

In watching C-Span yesterday as the Senate discussed the "fiscal cliff" two numbers rang in my ears. Not sure which Senator was talking as I caught it midstream but he was discussing the difference between revenues and spending. Now I have not vetted this information but for the sake of conversation let's say it is. The Senator stated that, per the CBO, that revenues have come back to the levels experienced back in 2007; roughly $2.5 trillion. Back in 2007 the budget for spending was $2.7 trillion. As of yesterday, according to the Senator who quoted the CBO the spending currently underway by the 112th Congress and President Obama is $3.5 trillion. Or nearly a $1 trillion deficit.

Now the deal struck after the ball dropped in Time Square only, if projections are right on the expected growth rate of the United States, raises roughly $60 billion. The idea for the compromise is that we raise revenue today and then when a small break takes place Congress can tackle the spending cuts. Unfortunately, Congress has a proven track record of not enacting the spending cuts. The last debt ceiling debate is a prime example. The raising of taxes under Reagan never saw the agreed to spending cuts materialize.

As I said previously in the blog entry about the Middle Class uniting, when will America wake up and understand that neither of these two parties care to really do what is needed. Real reform needs to take place or the Middle Class will see a bigger brunt of the gluttony of spending that has gone on in Washington for the past four decades. The bill passed in a cloak room of the Senate is pathetic and Americans should demand more of their government. Where have the Statesmen gone? Where are those courageous leaders that understand that tough choices sometimes can be very unpopular and potentially mean their job?

While it is easy to point the finger at the two party system, it is actually the average voter that is to blame. The entitled voter has allowed our Congress and Presidency to become a complacent and divide us into two camps. So what to do in 2013? Unfortunately we don't get to vote a lot of these bums out in November but we can still lay the groundwork for their dismissal from their elected positions. A resolution I have for 2013 is to create a following of people that will demand more from their elected officials, understand that we cannot change course by taxing one group of people, and that the real problem we face is a mounting debt and and economy that is spinning its wheels.